2020-08-14 • Updated
What are the forecasts for the oil market? Is there any hope of a recovery?
The International Energy Agency decreased its forecasts for the oil market on Thursday. Indeed, the coronavirus ruined the oil demand. Therefore, the Agency can’t give any optimistic guidelines. You might think that international borders have opened, and all the people, that waited for so long, broke out travelling. However, according to official data, there is still a low demand for jet fuel. Many countries have recently recorded fresh virus outbreaks, especially Europe and Latin America, where the coronavirus is spreading at a quite high speed.
Things are not so terrible as it may seem, OPEC+ members made all efforts to contain the prices at the current levels for almost two months. They have made enormous cuts of oil production, which pushed oil prices a little bit higher. Nevertheless, the prices are still well below pre-crisis levels, and they are unlikely to fully rebound soon.
Moreover, Libya’s port blockade will keep the North African’s crude oil out of the world market. Libya's oil export terminals are occupied. Therefore, it should help with the world’s supply glut. According to Bloomberg, Libya’s oil production dropped by 40% since July. It’s anticipated to be 1.2 million barrels in August. On the one hand, this blockade has made the devastating damage on the whole Libyan economy. On the other hand, it may decrease the world’s oversupply and push oil prices higher.
The Brent oil is slowly moving upward. There is the strong resistance at 200-day moving average at $46.50. It’s more likely the price will bounce off this resistance. However, if it manages to break it out, it will open doors to the key psychological mark at $50.00 at the 61.8% Fibonacci level. Sooner or later it should reach this level. Support levels are $43.50 and $42.00.
Important! To trade Brent oil with FBS you need to choose BRN-20V.
Saudi Arabia and Russia, two of the world's largest oil producers, have decided to extend cuts to their oil production to support oil prices and boost income. This move comes despite weakened demand due to the sluggish economy.
Oil prices fell to a three-month low following the release of US inflation data which was in line with expectations. The annual inflation rate of 6%...
Western countries are trying to find other options for oil and gas supplies after a 10th package of sanctions, which will put more pressure on Russian oil and decrease global oil supply. Italy, for example, is in talks with Libya.
The energy industry has undergone several major changes in the XXI that are becoming increasingly apparent…
In the dynamic world of financial trading, understanding the nuanced relationship between the Federal Reserve's key interest rates and Bitcoin can be a game-changer…
As the US Non-Farm Payrolls (NFP) take center stage, this month's data gains special attention, particularly after the unemployment rate took a concerning turn in the previous month. The US ADP Employment Change reveals a significant decline, with the economy adding 298K new jobs...
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
|
